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Soybean Meal (P) 1st Front Month  (SM*1)

453.6s+1.8 (+0.40%) 8:04P EDT (CBOT)
Commodity Price Quote as of Thursday, Jun 20th, 2013 View Help

Contract Specifications

Symbol SM
Name Soybean Meal [Pit] (SM)
Exchange CBOT
Trading Months January, March, May, July, August, September, October, December (F, H, K, N, Q, U, V, Z)
Trading Unit 100 tons (2,000 pounds per ton)
Tick Size 10 cents per ton ($10.00 per contract)
Daily Limit $20 per ton ($2,000 per contract)
Trading Hours 8:30a.m. - 1:15p.m. CST
Last Trading Day The business day prior to the 15th calendar day of the contract month
Value of one futures unit $100
Value of one options unit $100

CRB Yearbook Description

Soybean meal is produced through processing and separating soybeans into oil and meal components. By weight, soybean meal accounts for about 35% of the weight of raw soybeans (at 13% moisture). If the soybeans are of particularly good quality, then the processor can get more meal weight by including more hulls in the meal while still meeting the 48% protein minimum. Soybean meal can be further processed into soy flour and isolated soy protein, but the bulk of soybean meal is used as animal feed for poultry, hogs and cattle. Soybean meal accounts for about two-thirds of the world's high-protein animal feed, followed by cottonseed and rapeseed meal, which together account for less than 20%. Soybean meal consumption has been moving to record highs in recent years. The soybean meal marketing year begins in October and ends in September. Soybean meal futures and options are traded on the Chicago Board of Trade (CBOT). The CBOT soybean meal futures contract calls for the delivery of 100 tons of soybean meal produced by conditioning ground soybeans and reducing the oil content of the conditioned product and having a minimum of 48.0% protein, minimum of 0.5% fat, maximum of 3.5% fiber, and maximum of 12.0% moisture.

Soybean crush - The term soybean "crush" refers to both the physical processing of soybeans and also to the dollar-value premium received for processing soybeans into their component products of meal and oil. The conventional model says that processing 60 pounds (one bushel) of soybeans produces 11 pounds of soybean oil, 44 pounds of 48% protein soybean meal, 3 pounds of hulls, and 1 pound of waste. The Gross Processing Margin (GPM) or crush equals (0.22 times Soybean Meal Prices in dollars per ton) + (11 times Soybean Oil prices in cents/pound) - Soybean prices in $/bushel. A higher crush value will occur when the price of the meal and oil products are strong relative to soybeans, e.g., because of supply disruptions or because of an increase in demand for the products. When the crush value is high, companies will have a strong incentive to buy raw soybeans and boost the output of the products. That supply increase should eventually bring the crush value back into line with the long-term equilibrium.

Prices - Soybean meal futures prices at the Chicago Board of Trade traded sideways in early 2011 and then sold off fairly sharply late in the year to post a 1-1/2 year low in November and close 2011 down -16% at $309.4 per ton.

Regarding cash prices, the average price of soybean meal (48% solvent) in Decatur, Illinois in the 2011-12 marketing year (i.e., October 2011 to September 2012) through December of 2011, averaged $296.03 per short ton, down by -14.3% yr/yr.

Supply - World soybean meal production in 2011-12 rose +3.5% yr/yr to a new record high of 183.289 million metric tons. The world's largest soybean meal producers are China with 26.6% of world production in 2011-12, the US with 19.5%, Brazil with 15.6%, and the European Union with 6.7%. U.S. production of soybean meal in 2011-12 fell -1.4% yr/yr to 38.685 million short tons, below the 2006-07 record high of 43.054. U.S. soybean meal stocks in 2011-12 (Oct 1) rose +15.9% yr/yr to 350,000 short tons, below the decade high of 383,000 short tons in 2001-02.

Demand - World consumption of soybean meal in 2011-12 rose +3.7% yr/yr to 181.427 million metric tons, a new record high. The U.S. accounted for 15.4% of that consumption and the European Union accounted for 18.2%. U.S. consumption of soybean meal in 2011-12 rose +0.7% yr/yr to 27.941 million metric tons.

Trade - World exports of soybean meal in 2011-12 rose +1.6% to 60.607 million metric tons. Brazil accounted for 24.1% of world exports and the U.S. accounted for 13.0%. World imports of soybean meal in 2011-12 rose +1.5% yr/yr to 58.894 million metric tons. U.S. exports of soybean meal in 2011-12 fell -3.3% yr/yr to 8.800 million short tons. U.S. imports of soybean meal in 2011-12 fell -7.8% yr/yr to 165,000 short tons, remaining well below the record high of 285,000 short tons seen in 2003-04.

Articles from the Commodity Research Bureau (CRB) Commodity Yearbook. The single most comprehensive source of commodity and futures market information available, the Yearbook is the book of record of the Commodity Research Bureau, which is, in turn, the organization of record for the commodity industry itself. Its sources - reports from governments, private industries, and trade and industrial associations - are authoritative, and its historical scope is second to none. Additional information can be found at www.crbyearbook.com.
More commodity data from Commodity Research Bureau.